Solace Capital Partners has closed its debut fund, a vehicle focused on distressed and special situations investments in mid-market companies, with $576 million in commitments, the firm said on Monday.
The firm started fundraising for its Solace Capital Special Situations Fund in early 2015, according to a source familiar with the matter. The firm beat its $500 million target, which will target North American businesses.
The sources said that, to date, the fund has invested more than $120 million in five portfolio companies, including an automotive parts distributor, an energy-related firm and a furniture company.
The firm declined to comment further.
The fund additionally targets infrastructure, construction services, transportation, financial services, aerospace, gaming and leisure, and media and telecommunications companies with revenues typically ranging from $50 million to $1 billion, according to the firm’s website. The fund’s standard investment size ranges from $10 million to $75 million.
Chris Brothers, Vince Cebula and Brett Wyard, all managing partners at Solace, said in a statement that they expect more corporate defaults and distressed opportunities to come, given the current investing environment, which will bode well for their firm.
“With five investments already in our portfolio, we are off to a strong start and are excited by the numerous opportunities in our pipeline,” they added.
The three men, all former managing partners at Oaktree Capital Management, launched Solace in 2014, as Private Debt Investor previously reported. The private investment firm focuses on special situations and distressed investments in mid-market companies, according to the statement. Solace has offices in Los Angeles and New York.